NEW YORK, March 23, 2026, 13:05 EDT
Stocks in the U.S. surged Monday—the Dow Jones Industrial Average jumped over 1,000 points, while both the S&P 500 and Nasdaq gained close to 2%. Oil tumbled after President Donald Trump announced a five-day delay on planned strikes targeting Iranian power plants, mentioning ongoing discussions with Tehran. Brent crude slid roughly 8%, U.S. crude lost around 7.3%, as traders pulled back from pricing in a major supply shock.
The rebound was significant: Wall Street had been sliding as investors fretted the war might block the Strait of Hormuz, a route that handles about a fifth of global oil and LNG shipments, heightening inflation risks. Those concerns sent the S&P 500 to a four-month low last week and pushed expectations for Federal Reserve rate cuts even further into the future.
By early afternoon, the Dow jumped 1,021.70 points to 46,599.17. The S&P 500 tacked on 136.26 points, reaching 6,642.74. Over on the Nasdaq, a 493.02-point surge pushed it to 22,140.63. The VIX—Wall Street’s fear gauge—eased back after briefly hitting a two-week peak. Benchmark Treasury yields slipped by around 0.05 to 0.06 percentage point.
Elias Haddad, global head of markets strategy at Brown Brothers Harriman, described the move as a “knee-jerk reaction” to improved headlines. For David Bianco, Americas chief investment officer at DWS, this pause just “buys time,” rather than signaling any peace deal. Reuters
Travel names, battered earlier by surging fuel costs, were out front in the bounce. American Airlines climbed $0.43 to $10.86 just before 1 p.m. EDT. United Airlines advanced $3.67 to $93.62. Carnival tacked on $1.41, reaching $25.53.
Cost pressures drove the decision. According to Melius Research, airlines had already tacked on two fare hikes of about $10 each way. TD Cowen bumped up its 2026 earnings forecast for the six biggest U.S. carriers. United, for its part, said Friday it plans to trim more money-losing routes, citing the possibility that oil prices could stay north of $100 a barrel through 2027. CEO Scott Kirby told employees United is getting ready for that scenario, even if it never happens.
Banks rebounded, with easing oil prices and a dip in yields cooling the inflation trade. JPMorgan Chase and Goldman Sachs climbed, while the S&P 500 banking index advanced 1.8%. The Russell 2000 small-cap index surged 2.9%, boosted by gains in stocks sensitive to moves in borrowing costs.
The rebound didn’t look solid. Iran shot down speculation about any talks with Washington, while Israel’s military reported ongoing strikes on Tehran. Goldman Sachs, for its part, bumped its 2026 Brent forecast to $85 a barrel on Sunday, warning Brent might hit an average of $110 in March and April.
Eyes shift to Fed speakers, with fresh business activity numbers and consumer sentiment due out later this week. All three major indexes headed for their sharpest single-day gain since Feb. 6. Still, after scraping a four-month low, stocks remain tethered to the latest oil developments.
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